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United Kingdom
Elite_Member
Experience: Beginner
Platform: Bookmap
Broker: Stage 5, Rithmic
Trading: US Equity Index Futures
Posts: 1,250 since Sep 2013
Thanks Given: 3,500
Thanks Received: 2,532
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I remember Market Delta had a continuous cumulative plot but a lot of platforms just reset it at the start of a new trading day. Unless you are swing trading on a chart looking at new highs or lows compared to previous ones of different days I don't see that it makes any difference if using it as a divergence indicator for intraday day trading as, like you say, it is only the value of bars that changes. ie. The shape of the Cumulative Delta plot is exactly the same, it is just at a higher or lower point on the Y axis if reset.
So if using CD intraday in the same way one might use RSI to spot divergence, eg. Price makes a new swing high on a 5/15/30 whatever minute chart but CD doesn't maybe suggesting a selling opportunity, there is no change in the relationship of the CD highs and lows to each other whether reset or not.
(And if you do want a divergence indicator for longer term swing trading, then use RSI).
| You do not win as a trader, you just get to play again the next day. If that game doesn’t appeal to you then you should not trade. Gary Norden |
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